Burton and Page write that the business energy tax credit program in Oregon has been “mired in controversy” with lawmakers “making public claims of noncompliance, noncompetitive bidding, and tax evasion regarding the buying and selling of the credits.” One member of the legislature, they add, has even “called for clawing back or reducing the value of some credits that have already been granted.”

With all of this in mind, the article outlines three considerations for those taxpayers involved with transferable tax credit regimes:

Transferable credits are not always easily transferable.

Transferable credits should be sold in a competitive public bidding process.

A buyer of discounted transferable tax credits should report a gain on the difference between the purchase price and the value of the realized credits.